Ally Bank Online Savings Account Review: High Yields and Better Service

A review of Ally Bank reveals numerous features and benefits.

Ally Bank is an online-only financial institution with a broad range of services including live customer service, 24/7 over the phone or via online chat. The bank offers traditional checking and savings account options, auto loans, home mortgages, credit cards and investment options. Check out this Ally Bank review to learn all the features and benefits of the bank’s online savings account, and see why it was named GOBankingRates’ best online bank.

Ally Bank Online Savings Account Review

The Ally Bank Online Savings Account carries the same FDIC insurance as traditional banks — up to $250,000 per depositor, per account type. The savings account carries no monthly maintenance fees, nor does it charge fees for cashier’s checks, online statements, ACH transfers or incoming wires. The online savings account doesn’t have a minimum balance requirement, and it includes a 1.20% APY as of Sept. 21, 2017.

Check Out: Ally Mobile Banking App Review — Easy and Complete Account Management

Ally Bank Products and Services

As long as you have an internet connection, you can access your Ally accounts from anywhere, via the bank’s online and mobile banking platforms. Once you open an account, move money at any time between your Ally Bank accounts or transfer money to accounts at other institutions by scheduling them up to one year in advance.

Ally Bank offers free ATM access at more than 43,000 Allpoint ATMs along with a $10 reimbursement per statement cycle for ATMs used at other institutions. ATM access is not allowed for the savings account. Instead, you can access money via an Allpoint ATM with an Ally Money Market or Interest Checking Account.

Learn: How to Withdraw Cash From Online Banks Like Ally and Discover

Pros and Cons of the Ally Savings Account

So you can better decide whether Ally Bank’s online savings account is right for you, understand the advantages and drawbacks to this financial tool. Here’s what you need to know to decide if this account is the right move for your money.

Ally Bank Pros

When researching good savings accounts, many investors look first at the interest they’ll earn. The Ally Bank Online Savings Account interest rate of 1.20% APY is high relative to the nationwide average, which stands at just 0.06% APY as of Sept. 21, 2017.

Here are the other main benefits of the Ally Online Savings Account:

  • 24/7 live customer service
  • No monthly maintenance fees
  • FDIC insurance
  • Free mobile and online banking
  • Ability to transfer money between internal and external accounts
  • Access to other account types, including investment services within the Ally Financial family of companies
  • Overdraft transfer service when you link an Ally Interest Checking or Money Market account with your Online Savings Account
  • Account alerts via email, text, or both when overdrafts or other account transactions occur
  • Overall high customer service ratings

Find Out: How to Deposit Cash to an Online Bank Account

Ally Bank Cons

No bank account can meet all needs of all people, and the Ally Bank Online Savings Account is no different. For starters, Ally Bank does not accept cash deposits. Although that might seem logical because Ally Bank has no physical branches, some Ally Bank competitors do have the ability to accept cash.

Here are some other negative aspects of an Ally Bank Online Savings Account:

  • Deposits possible only via wire transfer, mailing or scanning checks
  • No physical branches to visit
  • Limit of six transactions per statement cycle
  • Overdraft fee of $25
  • No debit card
  • No ATM access

Most drawbacks of the Ally Bank Online Savings Account are not institution-specific; rather, they’re limitations of online savings accounts in general. For example, most online banks have no bricks-and-mortar presence and debit cards are typcially connected to checking accounts, not savings accounts. The six-transaction-per-cycle limit is a federal imposition, not an Ally Bank limitation.

Related: Pros and Cons of Online Savings Accounts

The Ally Bank Savings Account offers a variety of banking services, 24/7 customer service, and FDIC insurance. Whether this is the best online bank for you depends on what you need out of a bank. Weigh the cons against the pros to determine if Ally Bank should be your choice of online savings account.

This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by Ally Bank.

  • nik

    Ally still makes excuses why they don’t have features they promised – just teasers, while not delivering anything. On top of that I just had an experience where their loss prevention/ fraud department gave me a major attitude with the “I don’t care” attitude about them taking my money hostage. They froze my account without any warning. I lost access to my bank account, bills weren’t getting paid, couldn’t access to set up bills, couldn’t get cash out from ATM, etc. all b/c I had called in the general customer service dept raising my concerns about the billpay not working correctly (payee information was being altered without me doing it – such as payee address and acct number – which resulted in some of my bills not getting paid. Was able to find multiple case of similar glitches once I started investigating). The general customer service dept’s hands were tied as they also didn’t know what was going on and couldn’t get access to my account. Turns out that the fraud department started looking into the issues I reported, froze my account without notice, and left for the weekend as their FRAUD department only works 8am~5pm ET. I was left without access to my account all weekend without notice. Again, no bill pay, no access, no ATM use. When I finally got a human being from the fraud department on the phone on Monday, the gal who was handling the case took a tone with me (defensive). So I asked to speak with the supervisor – who all he did was try to get rid of me and totally had the “I don’t really care” attitude while giving me excuses. No sincerity for what they put me through what so ever. The general service department was clearly trained much better to be professional and be polite and apologetic when they couldn’t help. However the fraud department was unprofessional, insincere, and just a 8-to5′er who didn’t care.
    I am leaving Ally not only because they promised features they can’t deliver but because of the billpay issues I’ve experienced, along with the most terrible customer service I received from the fraud department. They took my account hostage without notice and they didn’t even apologize, just saying “that’s our process” – what a cop out to blame the “process”. I’ve spoken to other friends who recently also joined Ally. They told me their nightmare stories and we’re all leaving. I can’t stay with a bank I cannot trust. No way I can trust my money with this bank – I’m just so shocked they get away with this. They spend all their money on advertising and promising features they don’t have. Now I learned that their “process” is messed up and they don’t have respect for their customer and their money. I am baffled they can get away with this.

    • DontBankwithally

      This happened to me as well. It has been a month and they have had my money tied up in the fraud department . The Loss department hung up on me . This is the worst bank i have ever dealt with . Do not bank with them , they will hold your money , not call you back and not give you access . They are claiming they can not identify me but now I just want to close my account and get my money back . I even told them they can cancel the check deposited if they think it is fraudulent but they wont even do that! It has been one month and i have over 9,000 sitting that I can not touch . LOSS PREVENTION DEPT IS A JOKE! AVOID THIS BANK AT ALL COSTS.

  • I’ve been a big fan and customer since their GMAC days. My only gripe is that transfers are not instantaneous. But they’ve got to make their money somehow (on the float) to offer accounts with no minimums and great rates. Small price to pay, IMHO.